In 2017, the U.S. market for mechanical engineering was sized at around 401.6 billion dollars, claims a report by market analyst, Statista. Being one of the leading players in the mechanical engineering space, the country is committed to focusing on technological innovations i.e. developing advanced manufacturing or automation equipment to stay ahead of other global players in the field. VDMA further states that the USA remains the largest export market for German machinery. Exports to the United States increased by 11.6 % to nearly 18 billion euros last year. However, in line with recent events such as Trump’s trade policy, the mechanical engineering industry may also witness a setback in the coming months.
Japan is known for its superior quality and the Japanese Government is also promoting the concept of ‘Connected Industry’ for transforming the country’s landscape from a traditional manufacturing set up to an advanced manufacturing one. The Ministry of Economy, Trade and Industry (METI) has also stated that advanced manufacturing is one of Japan’s key growing sectors and has also predicted that it will reach about 270 billion dollars by 2020. This includes IoT-related technologies and smart factory applications in machineries.
Coming to the current market scenario of the machinery industry, the latest government data reveals that core machinery orders in Japan plunged 18.3 per cent in September of 2018, after a 6.8 % jump in the previous month and compared to market expectations of a 9.5 % decline. It was the fourth fall in seven months and the sharpest monthly drop on record.
The mechanical engineering industry is largely dominated by these four players. Hence, keeping in mind, the changing dynamics and trade uncertainties in the market, we hope that the industry witnesses a significant growth in the months to come.